Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Nikola CEO confident of closing deal with energy partner, shares up almost 21%

Stock MarketsSep 30, 2020 02:10PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. U.S. Nikola's logo is pictured at an event held to present CNH's new full-electric and Hydrogen fuel-cell battery trucks in partnership with U.S. Nikola event in Turin

By Ben Klayman

DETROIT (Reuters) - Nikola Corp (O:NKLA) Chief Executive Mark Russell said Wednesday he is confident the electric and hydrogen fuel cell vehicle startup will close a deal with an energy partner, and he defended the company's technology and strategy against a short-seller's fraud allegations, sending shares up almost 21% at one point.

Russell told Reuters he is confident Nikola will still announce by year-end a collaboration to build hydrogen-refueling stations. There have been reports this week that Nikola's talks with energy firms, including BP Plc (L:BP), had stalled.

"We've talked to all of those folks and those discussions are continuing," he said in an interview. "We're confident that we're still going to hit the milestones laid out there of announcing a partner by the end of the year and getting stations going starting next year."

Short-seller Hindenburg Research released a scathing report on Sept. 10 that called Nikola a "fraud" and said Nikola founder and former Executive Chairman Trevor Milton had made false claims about Nikola's proprietary technology.

Milton resigned and left the company on Sept. 21 and was replaced by Steve Girsky, whose firm took Nikola public earlier this year through a reverse merger.

Nikola has said it has discussed Hindenburg Research's charges with the Securities and Exchange Commission and will "fully cooperate" with the agency's inquiry. Russell and Girsky on Wednesday declined to comment on probes by securities regulators or the Department of Justice. Hindenburg officials declined to comment.

Nikola's shares have lost more than half their value since announcing on Sept. 8 a prospective alliance with General Motors Co (N:GM) to produce an electric pickup and fuel cell commercial trucks.

On Wednesday, Nikola stepped up its efforts to regain investor support with a lengthy statement defending its business model and technology. It reaffirmed its timetable for launching vehicles and announcing partnerships.

Nikola said it still expects to break ground on its first commercial hydrogen station in the second quarter of 2021.

Girsky, who joined Russell in the interview, said Nikola will be as much a service provider, generating revenue from refueling and other after-sale businesses, as a manufacturer of vehicles.

"Downstream revenue is more profitable and less cyclical. To be able to capture that revenue is pretty powerful to us," Girsky said.

Russell said talks continue to finalize an alliance with GM but declined further comment. Nikola had previously said it expected to finalize terms prior to Sept. 30.

GM also affirmed Wednesday that the talks with Nikola continue.

Russell said Nikola's success did not depend on partners, but they "increase the odds of succeeding."

JP Morgan analyst Paul Coster said in a research note Nikola is trying to "re-establish control of the narrative around the company." He said closing the GM deal is the most important near-term catalyst and Nikola's strategy remains compelling although execution risks remain.

Nikola shares rose as high as $21.59 and were still up 17.5% at $21.02 in afternoon trading.

Nikola CEO confident of closing deal with energy partner, shares up almost 21%
 

Related Articles

U.S. FTC sues to block Nvidia deal to buy Arm
U.S. FTC sues to block Nvidia deal to buy Arm By Reuters - Dec 02, 2021 1

By Stephen Nellis and David Shepardson SAN FRANCISCO/WASHINGTON (Reuters) -The U.S. Federal Trade Commission on Thursday sued to block U.S. chip company Nvidia (NASDAQ:NVDA)...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email